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A Structural Econometric Model of Consumer Demand at Pick-Your-Own Fruit Operations

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  • Carpio, Carlos E.
  • Wohlgenant, Michael K.

Abstract

This paper develops a fully structural econometric consumer demand model for goods which have time and monetary costs, and where time spent obtaining the goods also enters into the utility function. The model is used to analyze customers'’ decision to buy pick-your-own versus pre-harvested fruit at North Carolina pick-your-own fruit operations. The empirical application distinguishes the double effect of time as a resource constraint and also providing utility. Elasticity estimates show that strawberries sold at pick-your-own operations are price elastic, with pick-your-own fruit being less price elastic than pre-harvested fruit.

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File URL: http://purl.umn.edu/21372
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21372.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21372

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Keywords: Consumer/Household Economics;

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  1. Douglas M. Larson & Sabina L. Shaikh, 2001. "Empirical Specification Requirements for Two-Constraint Models of Recreation Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 428-440.
  2. Jeongwen Chiang, 1991. "A Simultaneous Approach to the Whether, What and How Much to Buy Questions," Marketing Science, INFORMS, vol. 10(4), pages 297-315.
  3. Govindasamy, Ramu & Nayga, Rodolfo M., Jr., 1997. "Determinants Of Farmer-To-Consumer Direct Market Visits By Type Of Facility: A Logit Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), April.
  4. Colin A. Carter & James A. Chalfant & Rachael E. Goodhue & Frank M. Han & Massimiliano DeSantis, 2005. "The Methyl Bromide Ban: Economic Impacts on the California Strawberry Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(2), pages 181-197.
  5. Mark B. Stewart, 1982. "On Least Squares Estimation When the Dependent Variable is Grouped," Working Papers 539, Princeton University, Department of Economics, Industrial Relations Section..
  6. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-61, May.
  7. Pradeep K. Chintagunta, 1993. "Investigating Purchase Incidence, Brand Choice and Purchase Quantity Decisions of Households," Marketing Science, INFORMS, vol. 12(2), pages 184-208.
  8. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
  9. Richards, Timothy J. & Patterson, Paul M., 1999. "The Economic Value Of Public Relations Expenditures: Food Safety And The Strawberry Case," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(02), December.
  10. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761 Elsevier.
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